As per Niraj Giri, spokesperson of SEBON, the regulatory body demanded explanation with mutual fund managers who have invested an excess amount in bank fixed deposits above the limit set by SEBON within fifteen days.
The board has asked explanation with CBIL Capital-manager of Citizens mutual Fund-1, NMB Sulav Investment -1-manager of NMB Mutual Fund, NMB Capital-manager of NMB Hybrid Fund-1, Laxmi Capital Market-manager of Laxmi Equity Fund-1 and Laxmi Value Fund-1 and NIC Asia Capital- manager of NIC Asia Growth Fund.
Giri said that the fact that these mutual funds have invested excess funds in fixed deposit above the limit set by SEBON is apparent in their monthly financial report, thus, they have been questioned seeking an answer.
As per subsection 5 of Section 36 of Mutual Fund Regulation, 2067 mutual funds are allowed to invest a maximum of 10 percent of the total asset value of every mutual fund scheme as a bank fixed deposit, however, the mutual funds have been found defying the rule while conduction field inspection by the board.